THE NATIONAL TRUST FOR WELFARE OF PERSONS WITH AUTISM, CEREBRAL 
PALSY, MENTAL RETARDATION AND MULTIPLE DISABILITIES ACT, 1999 

ARRANGEMENT OF SECTIONS 

SECTIONS 

1.  Short title and extent. 
2.  Definitions. 

CHAPTER I 

PRELIMINARY 

CHAPTERII 

THE NATIONAL TRUST FOR WELFARE OF PERSONS WITH AUTISM, CEREBRAL PALSY, MENTAL 
RETARDATION AND MULTIPLE DISABILITY 

3.  Constitution of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental 

Retardation and Multiple Disability, etc. 

4.  Term of office of Chairperson and Members, meeting of Board, etc. 
5.  Resignation of Chairperson and Members. 
6.  Disqualifications. 
7.  Vacation of office by Members. 
8.  Chief Executive Officer and staff of Trust. 
9.  Vacancies in Board not to invalidate acts, etc. 

10.  Objects of Trust. 

CHAPTER III 

OBJECTS OF THETRUST 

CHAPTER IV 

POWERS AND DUTIES OF THE BOARD 

11.  Powers and duties of Board. 

12.  Procedure for registration. 

CHAPTER V 

PROCEDURE FOR REGISTRATION 

CHAPTER VI 

LOCAL LEVEL COMMITTEES 

13.  Constitution of local level committees. 
14.  Appointment for guardianship. 
15.  Duties of guardian. 
16.  Guardian to furnish inventory and annual accounts. 
17.  Removal of guardian. 

CHAPTER VII 

ACCOUNTABILITY AND MONITORING 

18.  Accountability. 
19.  Monitoring. 
20.  Annual general meeting. 

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CHAPTER VIII 

FINANCE, ACCOUNTS AND AUDIT 

SECTIONS 

21.  Grants by the Central 

Government. 

22.  Fund. 
23.  Budget. 
24.  Accounts and audit. 
25.  Annual report. 
26.  Authentication of orders, etc. 
27.  Returns and information. 

CHAPTER IX 

MISCELLANEOUS 

28.  Power of Central Government to issue directions. 
29.  Power of Central Government to supersede Board. 
30.  Exemption from tax on income. 
31.  Protection of action taken in good faith. 
32.  Chairperson, Members and officers of Trust to be public servants. 
33.  Delegation. 
34.  Power to make rules. 
35.  Power to make regulations. 
36.  Rules and regulations to be laid before Parliament. 

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THE NATIONAL TRUST FOR WELFARE OF PERSONS WITH AUTISM, CEREBRAL 
PALSY, MENTAL RETARDATION AND MULTIPLE DISABILITIES ACT, 1999 

ACT NO. 44 OF 1999 

[30th December, 1999.] 
An Act to provide for the constitution of a body at the National level for the Welfare of Persons 
with  Autism,  Cerebral  Palsy,  Mental  Retardation  and  Multiple  Disabilities  and  for  matters 
connected therewith or incidental thereto. 
BE it enacted by Parliament in the Fiftieth year of the Republic of India as follows:— 

CHAPTER I 

PRELIMINARY 

1. Short title and extent.—(1) This Act may be called the National Trust for Welfare of Persons with 

Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999. 

(2) It extends to the whole of India 1***. 
2. Definitions.—In this Act, unless the context otherwise requires— 

(a) “autism”  means  a  condition  of  uneven  skill  development  primarily  affecting 

the 

communication and social abilities of a person, marked by repetitive and ritualistic behaviour; 

(b) “Board” means Board of trustees constituted under section3; 
(c)  “cerebral  palsy”  means  a  group  of  non-progressive  conditions  of  a  person  characterised  by 
abnormal motor control and posture resulting from brain insult or injuries occurring in the pre-natal, 
perinatal or infant period of development; 

(d) “Chairperson” means the Chairperson of the Board appointed under clause (a) of sub-section 

(4) of section 3; 

(e) “Chief Executive Officer” means the Chief Executive Officer appointed under sub-section (1) 

of section 8; 

(f) “Member” means a Member of the Board and includes the Chairperson; 
(g) “mental retardation” means a condition of arrested or incomplete development of mind of a 

person which is specially characterised by sub-normality of intelligence; 

(h) “multiple disabilities” means a combination of two or more disabilities as defined in clause (i) 
of  section  2  of  the  Persons  with  Disabilities  (Equal  Opportunities,  Protection  of  Rights  and  Full 
Participation) Act, 1995 (1 of 1996); 

(i) “notification” means a notification published in the Official Gazette; 
(j)  “persons  with  disability”  means  a  person  suffering  from  any  of  the  conditions  relating  to 
autism, cerebral palsy, mental retardation or a combination of any two or more of such conditions and 
includes a person suffering from severe multiple disability; 

(k) “prescribed” means prescribed by rules made under this Act; 
(l) “professional” means a person who is having special expertise in a field which would promote 

the welfare of persons with disability; 

(m) “registered organisation” means an association of persons with disability or an association of 
parents  of  persons  with  disability  or  a  voluntary  organisation,  as the  case  may  be,  registered  under 
section12; 

(n) “regulations” means the regulations made by the Board under this Act; 
(o)  “severe  disability”  means  disability  with  eighty  per  cent.  or  more  of  one  or  more  multiple 

disabilities; 

(p) “Trust” means the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental 

Retardation and Multiple Disability constituted under sub-section (1) of section 3. 

1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f 

31-10-2019). 

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CHAPTER II 

THE NATIONAL TRUST FOR WELFARE OF PERSONS WITH AUTISM, CEREBRAL PALSY, MENTAL 
RETARDATION AND MULTIPLE DISABILITY 

3.  Constitution  of  the  National  Trust  for  Welfare  of  Persons  with  Autism,  Cerebral  Palsy, 
Mental  Retardation  and  Multiple  Disability,  etc.—(1)  With  effect  from  such  date  as  the  Central 
Government may, by notification, appoint there shall be constituted, for the purposes of this Act, a body 
by  the  name  of  the  National  Trust  for  Welfare  of  Persons  with  Autism,  Cerebral  Palsy,  Mental 
Retardation  and  Multiple  Disabilities,  which  shall  be  a  body  corporate  by  the  name  aforesaid,  having 
perpetual  succession  and  a  common  seal,  with  power,  subject  to  the  provisions  of  this  Act,  to  acquire, 
hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, 
sue or be sued. 

(2) The general superintendence, direction and management of the affairs and business of the Trust 
shall vest in a Board which may exercise all powers and do all acts and things which may be exercised or 
done by the Trust. 

(3) The head office of the Trust shall be at New Delhi and the Board may, with the previous approval 

of the Central Government, establish offices at other places in India. 

(4) The Board shall consist of— 

(a) a Chairperson to be appointed by the Central Government from amongst the persons having 
expertise  and  experience  in  the  field  of  autism,  cerebral  palsy,  mental  retardation  and  multiple 
disability; 

(b) nine persons to be appointed in accordance with such procedure as may be prescribed from 
amongst  the  registered  organisations  out  of  which  three  members  each  shall  be  from  voluntary 
organisations,  association  of  parents  of  persons  with  autism,  cerebral  palsy,  mental  retardation  and 
multiple disability and from association of persons with disability, Members: 

Provided that initial appointment under this clause shall be made by the Central Government by 

nomination; 

(c) eight persons not below the rank of Joint Secretary to the Government of India nominated by 
that  Government  to  represent  the  Ministries  or  Departments  of  Social  Justice  and  Empowerment, 
Women  and  Child  Development,  Health  and  Family  Welfare,  Finance,  Labour,  Education,  Urban 
Affairs and Employment and Rural Employment and Poverty Alleviation, Members, ex officio; 

(d) three Persons to be nominated by the Board representing the associations of trade, commerce 

and industry engaged in philanthropic activities, Members; 

(e) The Chief Executive Officer, who, shall be of the rank of Joint Secretary to the Government 

of India, Member-Secretary, ex officio. 
(5) The Board may associate with itself, in such manner and for such purposes as may be determined 
by  regulations,  any  person  whose  assistance  or  advice  it  may  desire  for  carrying  out  the  objects  of  the 
Trust: 

Provided that such person shall have a right to take part in the discussions relevant to that purposes 
but  shall  not  have  a  right  to  vote  at  a  meeting  of  the  Board  and  shall  not  be  a  member  for  any  other 
purposes: 

Provided further that the maximum number of persons so associated shall not exceed eight and so far 

as possible the person so associated shall belong to the registered organisation or from the professionals. 

4. Term of office of Chairperson and Members, meeting of Board, etc.—(1) The Chairperson or a 

Member shall hold office for a term of three years from the date of his appointment 1***: 

Provided that no person shall hold office as the Chairperson or other Member after he has attained the 

age of sixty-five years. 

2[(1A)  The  Central  Government  shall  initiate  the  process  for  appointment  of  the  Chairperson  or 
Member,  as  the  case  may  be,  at  least  six  months  prior  to  the  expiry  of  the  term  of  office  of  such 
Chairperson or Member.] 

(2)  The  conditions  of  service  of  the  Chairperson  and  other  Members  shall  be  such  as  may  be 

prescribed. 

1.  The  words  “or  until  his  successor  shall  have  been  duly  appointed,  whichever  is  longer"  omitted  by  Act  35  of  2018,  s.  2                

(w.e.f. 29-12-2018). 

2. Ins. by s. 2, ibid. (w.e.f. 29-12-2018). 

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(3) A casual vacancy in the Board shall be filled in accordance with the provisions of section 3 and a 
person  appointed  shall  hold  office  only  for  the  remainder  of the  term  for  which  the  member,  in  whose 
place he was appointed, would have held that office. 

1[Provided  that  the  Central  Government  may,  in  case  of  a  casual  vacancy  in  the  office  of  the 
Chairperson,  by  order  in  writing,  direct  an  officer  of  appropriate  level,  to  perform  the  functions  of  the 
Chairperson until such vacancy is filled in.] 

(4)  Before  appointing  any  person  as  the  Chairperson  or  a  Member,  the  Central  Government  shall 
satisfy itself that the person does not and will not, have any such financial or other interest as is likely to 
affect prejudicially his functions as such Member. 

(5) No Member of the Board shall be a beneficiary of the Trust during the period such Member holds 

office. 

(6) The Board shall meet at least once in three months at such time and place as may be determined 
by the Board by regulations and shall observe such rules of procedure in the transaction of business at a 
meeting as may be prescribed. 

(7)  The  Chairperson,  if  for  any  reason  is  unable  to  attend  the  meeting  of  the  Board,  any  Member 

elected by the Members present from amongst themselves at the meeting, shall preside at the meeting. 

(8) All questions which come up before any meeting of the Board shall be decided by a majority of 
votes of the Members present and voting, and in the event of an equality of votes, the Chairperson, or in 
his absence, the person presiding shall have a second or casting vote. 

5.  Resignation  of  Chairperson  and  Members.—(1)  The  Chairperson  may  resign  his  office  by 

writing under his hand addressed to the Central Government: 

Provided that the Chairperson shall continue in office 2[until his resignation is accepted by the Central 

Government]. 

(2) A Member may resign from office by writing under his hand addressed to the Chairperson. 

6. Disqualifications.—No person shall be a Member if he— 

(a) is, or becomes, of unsound mind or is so declared by a competent court; or 

(b)  is,  or  has  been,  convicted  of  an  offence,  which  in  the  opinion  of  the  Central  Government, 

involves moral turpitude; or 

(c) is, or at any time has been, adjudicated as an insolvent. 

7. Vacation of office by Members.—If a member— 

(a) becomes subject to any of the disqualifications mentioned in section 6;or 

(b) is, without obtaining leave of absence, absent from three consecutive meetings of the Board; 

or 

(c) tenders his resignation under section 5, his seat shall thereupon become vacant. 

8. Chief Executive Officer and staff of Trust.—(1) The Central Government shall appoint the Chief 
Executive Officer to exercise such powers and perform such duties under the direction of the Board as 
may be prescribed or as may be delegated to him by the Chairperson. 

(2)  The  Board  shall,  with  the  previous  approval  of  the  Central  Government,  appoint  such  other 

officers and employees as it considers necessary to carry out the objectives of the Trust. 

(3) The salary and allowances payable to, and the other terms and conditions of service of, the Chief 
Executive  Officer,  other  officers  and  employees  of  the  Trust  shall  be  such  as  may  be  determined  by 
regulations. 

1. Ins. by Act 35 of 2018, s. 2 (w.e.f. 29-12-2018). 
2. Subs. by s. 3, ibid., for “until the appointment of his successor is made by the Central Government” (w.e.f. 29-12-2018). 

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9.  Vacancies  in  Board  not  to  invalidate  acts,  etc.—No  act  or  proceeding  of  the  Board  shall  be 
called  in  question  on  the  grounds  merely  of  the  existence  of  any  vacancy  in,  or  any  defect  in  the 
constitution of, the Board. 

CHAPTER III 

OBJECTS OF THE TRUST 

10. Objects of Trust.—The objects of the Trust shall be— 

(a)  to  enable  and  empower  persons  with  disability  to  live  as  independently  and  as  fully  as 

possible within and as close to the community to which they belong; 

(b) to strengthen facilities to provide support to persons with disability to live within their own 

families; 

(c) to extend support to registered organisations to provide need based services during the period 

of crisis in the family of persons with disability; 

(d) to deal with problems of persons with disability who do not have family support; 

(e)  to  promote  measures  for  the  care  and  protection  of  persons  with  disability  in  the  event  of 

death of their parent or guardian; 

(f) to evolve procedure for the appointment of guardians and trustees for persons with disability 

requiring such protection; 

(g) to facilitate the realisation of equal opportunities, protection of rights and full participation of 

persons with disability; and 

(h) to do any other act which is incidental to the aforesaid objects. 

CHAPTER IV 

POWERS AND DUTIES OF THE BOARD 

11. Powers and duties of Board.—(1) The Board shall— 

(a) receive  from  the  Central  Government  a  one-time  contribution  of  rupees  one hundred crores 
for  a  corpus,  the  income  whereof  shall  be  utilised  to  provide  for  adequate  standard  of  living  for 
persons with disability; 

(b)  receive  bequests  of  movable  property  from  any  person  for  the  benefit  of  the  persons  with 

disability in general and for furtherance of the objectives of the Trust in particular: 

Provided  that it shall  be  obligatory  on  the  part  of the  Board to  make  arrangement  for  adequate 
standard  of  living  for  the  beneficiary  named  in  the  bequest,  if  any,  and  to  utilise  the  property 
bequeathed for any other purpose for which the bequest has been made: 

Provided  further  that  the  Board  shall  not  be  under  any  obligation  to  utilise  the  entire  amount 
mentioned in the bequest for the exclusive benefit of the persons with disability named as beneficiary 
in the bequest; 

(c)  receive  from  the  Central  Government  such  sums  as  may  be  considered  necessary  in  each 
financial  year  for  providing  financial  assistance  to  registered  organisations  for  carrying  out  any 
approved programme. 

(2) For the purposes of sub-section (1), the expression “approved programme” means— 

(a)  any  programme  which  promotes  independent  living  in  the  community  for  persons  with 

disability by— 

(i) creating a conducive environment in the community; 

(ii) counselling and training of family members of persons with disability; 

(iii) setting up of adult training units, individual and group homes; 

(b) any programme which promotes respite care, foster family care or day care service for persons 

with disability; 

(c) setting up of residential hostels and residential homes for persons with disability; 

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(d) development  of  self-help  groups  of  persons  with  disability  to  pursue  the  realisation  of  their 

rights; 

(e) setting up of local level committee to grant approval for guardianship; and 

(f) such other programmes which promote the objectives of the Trust. 

(3) While earmarking funds for the purposes of clause (c) of sub-section (2), preference shall be given 

to women with disability or to persons with severe disability and to senior citizens with disability. 

Explanation.—For the purposes of this sub-section, the expression,— 

(a)  “persons with severe disability” shall have the same meaning as is assigned to it under sub-
section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights 
and Full Participation) Act, 1995 (1 of1996); 

(b) “senior citizen” means a person who is above the age of sixty-five years or more. 

CHAPTER V 

PROCEDURE FOR REGISTRATION 

12. Procedure for registration.—(1) Any association of persons with disability, or any association 
of  parents  of  persons  with  disability  or  a  voluntary  organisation  whose  main  object  is  promotion  of 
welfare of persons with disability may make an application for registration to the Board. 

(2) An application for registration shall be made in such form and manner and at such place as the 
Board  may  by  regulation  provide  and  shall  contain  such  particulars  and  accompanied  with  such 
documents and such fees as may be provided in the regulations. 

(3) On  receipt  of  application  for registration, the  Board may  make  such  enquiries as it  thinks fit in 

respect of genuineness of the application and correctness of any particulars thereon. 

(4) Upon receipt of such application the Board shall either grant registration to the applicant or reject 

such application for reasons to be recorded in writing: 

Provided that where registration has been refused to the applicant, the said applicant may again make 

an application for registration after removing defects, if any, in its previous application. 

CHAPTER VI 

LOCAL LEVEL COMMITTEES 

13. Constitution of local level committees.—(1) The Board shall constitute a local level committee 

for such area as may be specified by it from time to time. 

(2) A local level committee shall consist of— 

(a) an  officer  of the  civil service  of  the  Union  or  of the State,  not  below  the  rank  of  a  District 

Magistrate or a District Commissioner of a district; 

(b) a representative of a registered organisation; and 

(c) a person with disability as defined in clause (t) of  section 2 of the Persons with Disabilities 

(Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of1996). 

(3)  A  local  level  committee  shall  continue  to  work  for  a  period  of  three  years  from  the  date  of  its 

constitution or till such time it is reconstituted by the Board. 

(4) A local level committee shall meet at least once in every three months or at such interval as may 

be necessary. 

14. Appointment  for  guardianship.—(1)  A  parent  of  a  person  with  disability  or  his  relative  may 
make an application to the local level committee for appointment of any person of his choice to act as a 
guardian of the persons with disability. 

(2)  Any  registered  organisation  may  make  an  application  in  the  prescribed  form  to  the  local  level 

committee for appointment of a guardian for a person with disability: 

Provided that no such application shall be entertained by the local level committee, unless the consent 

of the guardian of the disabled person is also obtained. 

(3) While considering the application for appointment of a guardian, the local level committee shall 

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consider— 

(a) whether the person with disability needs a guardian; 

(b) the purposes for which the guardianship is required for person with disability. 

(4)  The  local  level  committee  shall  receive,  process  and  decide  applications  received  under  sub-

sections (1) and (2), in such manner as may be determined by regulations: 

Provided  that  while  making  recommendation  for  the  appointment  of  a  guardian,  the  local  level 

committee shall provide for the obligations which are to be fulfilled by the guardian. 

(5) The local level committee shall send to the Board the particulars of the applications received by it 

and orders passed thereon at such interval as may be determined by regulations. 

15. Duties of guardian.—Every person appointed as a guardian of a person with disability under this 
Chapter shall, wherever required, either have the care of such person of disability and his property or be 
responsible for the maintenance of the person with disability. 

16.  Guardian  to  furnish  inventory  and  annual  accounts.—(1)  Every  person  appointed  as  a 
guardian under section 14 shall, within a period of six months from the date of his appointment, deliver to 
the  authority  which  appointed  him,  an  inventory  of  immovable  property  belonging  to  the  person  with 
disability  and  all  assets  and  other  movable  property  received  on  behalf  of  the  person  with  disability, 
together  with  a  statement  of  all  claims  due  to  and  all  debts  and  liabilities  due  by  such  person  with 
disability. 

(2) Every guardian shall also furnish to the said appointing authority within a period of three months 
at the close of every financial year, an account of the property and assets in his charge, the sums received 
and disbursed on account of the person with disability and the balance remaining with him. 

17.  Removal  of  guardian.—(1)  Whenever  a  parent  or  a  relative  of  a  person  with  disability  or  a 

registered organisation finds that the guardian is— 

(a) abusing or neglecting a person with disability; or 

(b) misappropriating or neglecting the property, 

it  may  in  accordance  with  the  prescribed  procedure  apply  to  the  committee  for  the  removal  of  such 
guardian. 

(2)  Upon  receiving  such  application  the  committee  may,  if  it  is  satisfied  that  there  is  a  ground  for 
removal and for reasons to be recorded in writing, remove such guardian and appoint a new guardian in 
his place or if such a guardian is not available make such other arrangements as may be necessary for the 
care and protection of person with disability. 

(3) Any person removed under sub-section (2) shall be bound to deliver the charge of all property of 
the  person  with  disability  to  the  new  guardian,  and  to  account  for  all  moneys  received  or disbursed  by 
him. 

Explanation.—For the purposes of this Chapter, the expression “relative” includes any person related 

to the person with disability by blood, marriage or adoption. 

CHAPTER VII 

ACCOUNTABILITY AND MONITORING 

18. Accountability.—(1) The books and documents in the possession of the Board shall be open to 

inspection by any registered organisation. 

(2) Any registered organisation can submit a written requisition to the Board for getting a copy of any 

book or document maintained by the Board. 

(3) The Board shall frame such regulations as it thinks necessary for allowing the access of any book 

or document to a registered organisation. 

19.  Monitoring.—The  Board  shall  determine  by  regulations  the  procedure  for  evaluating  the 
prefunding status of registered organisations seeking financial assistance from it and such regulations may 

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also provide for the guidelines for monitoring and evaluating the activities of the registered organisations 
who are receiving financial assistance from the Trust. 

20. Annual general meeting.—(1) The Board shall in each year hold an annual general meeting of 
registered  organisations,  and  not  more  than  six  months  shall  elapse  between  the  date  of  one  annual 
general meeting and that of the next. 

(2)  A  notice  of  the  annual  general  meeting  along  with  a  statement  of  accounts  and  records  of  its 
activities  during  the  preceding  year  shall  be  sent  by  the  Board  to  every  registered  organisation  at  such 
time as may be determined by regulations. 

(3) The quorum of such meeting shall be such number of persons of the registered organisations as 

may be determined by regulations. 

CHAPTER VIII 

FINANCE, ACCOUNTS AND AUDIT 

21.  Grants  by  the  Central  Government.—The  Central  Government  may,  after  due  appropriation 
made  be  Parliament  by  law  in  this  behalf,  make  to  the  Trust  a  one-time  contribution  of  rupees  one 
hundred crores for a corpus, the income whereof may be utilised to achieve the objects of the Trust under 
this Act. 

22.  Fund.—(1)  There  shall  be  constituted  a  Fund  to  be  called  the  National  Trust  for  Welfare  of 
Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Fund and there shall 
be credited thereto— 

(a) all moneys received from the Central Government; 

(b)  all  moneys  received  by  the  Trust  by  way  of  grants,  gifts,  donations,  benefactions,  bequests 

and transfers; 

(c) all moneys received by the Trust in any other manner or from any other source. 

(2) All moneys belonging to the fund shall be deposited in such banks or invested in such manner as 

the Board may, subject to the approval of the Central Government, decide. 

(3) The  Funds shall  be  applied  towards  meeting  the  administrative  and  other expenses of the Trust 
including  expenses  incurred  in  the  exercise  of  its  powers  and  performance  of  duties  by  the  Board  in 
relation to any of its activities under section 10 or for anything relatable thereto. 

23. Budget.—The Board shall prepare, in such form and at such time in each financial year as may be 
prescribed,  the  budget  for  the  next  financial  year  showing  the  estimated  receipt  and  expenditure  of  the 
Trust and shall forward the same to the Central Government. 

24. Accounts and audit.—(1) The Board shall maintain proper accounts and other relevant records 
and prepare an annual statement of accounts of the Trust including the income and expenditure accounts 
in such form as the Central Government may prescribe and in accordance with such general direction as 
may be issued by that Government in consultation with the Comptroller and Auditor-General of India. 

(2) The  accounts  of  the  Trust  shall  be  audited  by  the  Comptroller  and  Auditor  General  of  India  at 
such intervals as may be specified by him and any expenditure incurred by him in connection with such 
audit shall be payable by Board to the Comptroller and Auditor-General of India. 

(3)  The  Comptroller  and  Auditor-General  of  India  and  any  other  person  appointed  by  him  in 
connection with the audit of the accounts of the Trust shall have the same rights, privileges and authority 
in  connection  with  such  audit  as  the  Comptroller  and  Auditor-General  of  India  generally  has  in 
connection with the audit of the Government accounts and in particular, shall have the right to demand the 
production of books of account, connected vouchers and other documents and papers and to inspect any 
of the offices of the Trust. 

(4) The  accounts  of  the  Trust  as  certified  by  the  Comptroller  and  Auditor-General  of  India  or  any 
other person appointed by him in this behalf, together with the audit report thereon, shall be forwarded 
annually  to  the  Central  Government,  and  that  Government  shall  cause  the  same  to  be  laid  before  each 
House of Parliament. 

25. Annual report.—The Board shall prepare every year, in such form and within such time as may 

beprescribedanannualreportgivingatrueandfullaccountofitsactivitiesduringthepreviousyearand 

9 

 
copies thereof shall be forwarded to the Central Government and that Government shall cause the same to 
be laid before each House of Parliament. 

26. Authentication of orders, etc.—All orders and decisions of the Board and instruments issued in 
the  name  of  the  Trust  shall  be  authenticated  by  the  signature  of  the  Chairperson,  the  Chief  Executive 
Officer or any other officer authorised by the Chairperson in this behalf. 

27.  Returns  and  information.—The  Board  shall  furnish  to  the  Central  Government  such  reports, 

returns and other information as that Government may require from time to time. 

CHAPTER IX 

MISCELLANEOUS 

28.  Power  of  Central  Government  to  issue  directions.—(1)  Without  prejudice  to  the  foregoing 
provisions of this Act, the Board shall, in exercise of its powers or the performance of its duties under this 
Act, be bound by such directions on questions of policy as the Central Government may give in writing to 
it from time to time: 

Provided  that  the  Board  shall,  as  far  as  practicable,  be  given  an  opportunity  to  express  its  views 

before any direction is given under this sub-section. 

(2) The decision of the Central Government whether a question is one of policy or not shall be final. 

29.  Power  of  Central  Government  to  supersede  Board.—(1)  If  the  Central  Government  on  the 
complaint  of  a  registered  organisation  or  otherwise  has  reason  to  believe  that  the  Board  is  unable  to 
perform  or  has  persistently  made  default  in  the  performance  of  the  duties  imposed  on  it,  the  Central 
Government may issue notice to the Board asking why it should not be superseded: 

Provided  that  no  order  superseding  the  Board  shall  be  made  by  the  Central  Government,  unless  a 
notice affording reasonable opportunity to the Board has been given in writing that why it should not be 
superseded. 

(2) The  Central  Government  after  recording  reasons  in  writing  and  by  issuing  a  notification  in  the 

Official Gazette supersede the Board for a period of not more than six months: 

Provided  that  on  the  expiration  of  the  period  of  supersession,  the  Central  Government  may 

reconstitute the Board, in accordance with section3. 

(3) Upon the publication of the notification under sub-section (2),— 

(a) all the members of the Board shall, notwithstanding that their term of office had not expired as 

on the date of supersession, vacate their office as such members; 

(b) all the powers and duties which may, by or under the provisions of this Act, be exercised or 
performed  by  or  on  behalf  of  the  Trust  shall,  during  the  period  of  supersession,  be  exercised  and 
performed by such person or persons as the Central Government may direct. 

(4)  On  the  expiration  of  the  period  of  supersession  specified  in  the  notification  issued  under  sub-

section (2), the Central Government may— 

(a) extend the period of supersession for such further period as it may consider necessary so that 

the total period of supersession does not exceed more than six months; or 

(b) reconstitute the Board in the manner provided in section3. 

30. Exemption from tax  on  income.—Notwithstanding  anything  contained in the  Income-tax  Act, 
1961 (43 of 1961), or any other law for the time being in force relating to tax on income, profits or gains, 
the Trust shall not be liable to pay income-tax or any other tax in respect of its income, profits or gains 
derived. 

31. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall 
lie against the Central Government or the Trust or any member of the Board or Chief Executive Officer or 
any officer or other employee of the Trust or any other person authorised by the Board to perform duties 
under this Act for any loss or damage caused or likely to be caused by anything which is done in good 
faith. 

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Explanation.—For  the  purposes  of  this  section,  the  expression  “good  faith”  shall  have  the  same 

meaning as is assigned to it in the Indian Penal Code (45 of 1860). 

32.  Chairperson,  Members  and  officers  of  Trust  to  be  public  servants.—All  Members,  Chief 
Executive Officer, other officers and employees of the Trust shall be deemed, when acting or purporting 
to act in pursuance of any of the provisions of this Act, to be public servant within the meaning of section 
21 of the Indian Penal Code (45 of 1860). 

33. Delegation.—The Board may, by general or special order in writing, delegate to the Chairperson 
or any member or any officer of the Trust or any other person subject to such conditions and limitations, 
if  any,  as  may  be  specified  in  the  order  such  of  its  powers  under  this  Act  (except  the  power  to  make 
regulations under section 35) as it may deem necessary. 

34. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette, 

make rules for carrying out the provisions of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  powers,  such  rules  may 

provide for all of the following matters, namely:— 

(a) the procedure in accordance with which the persons representing registered organisation shall 

be elected under clause (b) of sub-section (4) of section3; 

(b) the conditions of service of the Chairperson and Members under sub-section (2) of section4; 

(c)  the rules of procedure in the  transaction  of  business  at  meetings  of  the  Board  under  

sub- section (6) of section4; 

(d) the powers and duties of the Chief Executive Officer under sub-section (1) of section8; 

(e) the form in which an application for guardianship may be made by a registered organisation 

under sub-section (2) of section14; 

(f) the procedure in accordance with which a guardian may be removed under section17; 

(g) the form in which, and the time within which, the budget of the Trust shall be forwarded to 

the Central Government under section23; 

(h) the form in which the annual statement of accounts shall be maintained under sub-section (1) 

of section24; 

(i)  the  form  in  which,  and  the  time  within  which,  the  annual  reports  shall  be  prepared  and 

forwarded under section25; 

(j) any other matter which is required to be, or may be, prescribed. 

35.  Power  to  make  regulations.—(1)  The  Board  may,  with  the  previous  approval  of  the  Central 
Government, by notification in the Official Gazette, make regulations consistent with this Act and rules 
generally to carry out the purposes of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may 

provide for all or any of the following matters, namely:— 

the  manner  and  purpose  for  which  a  person  may  be  associated  under  sub-section  (5)  of    

(a) 
section 3; 

(b) the time and place at which the Board shall meet under sub-section (6) of section 4; 

(c) the terms and conditions of service of, Chief  Executive Officer, other officers and employees 

of the Trust under sub-section (3) of section 8; 

(d)  the  form  and  manner  in  which  the  application  shall  be  made  for  registration  under  sub-
section  (2)  of  section  12  and  the  particulars  which  such  application  shall  contain  under  that  sub-
section; 

(e) the manner in which application for guardianship shall be received, processed and decided by 

the local level committee under sub-section (4) of section14; 

(f) the  particulars  of  applications  and orders  passed  thereon  by  the local  level  committee  under 

sub-section (5) of section14; 

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(g) the procedure for evaluating the pre-funding status of the registered organisations and framing 
of  guidelines  for  monitoring  and  evaluating  the  activities  of  such  registered  organisations  under 
section19; 

(h) the time  within  which  notice  for annual  general  meeting  shall  be  sent  and  quorum  for  such 

meeting under sub-sections (2) and (3) of section 20;and 

(i) any other matter which is required to be, or may be, provided by regulations. 

36. Rules  and  regulations  to  be  laid  before  Parliament.—Every  rule  and  every  regulation  made 
under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it 
is in session, for a total period of thirty days which may be comprised in one session or in two  or more 
successive  sessions,  and  if,  before  the  expiry  of  the  session  immediately  following  the  session  or  the 
successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or 
both  houses  agree  that the  rule  or  regulation should not  be  made,  the  rule  or regulation  shall thereafter 
have effect only in such modified form or be of no effect, as the case may be; so, however, that any such 
modification  or  annulment  shall  be  without  prejudice  to the  validity  of  anything  previously  done  under 
that rule or regulation. 

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